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Buying Overseas Property
Copyright 2005 Hugh Griffin
Fourteen Top Tips for Overseas Property Investment:
1. Buy what you want to buy. The most important decision when buying a property is deciding exactly what you want the property to do for you. Is it purely for...
How to Save Taxes with an S Corporation
How to Save Taxes with an S Corporation
Ever wondered why so many small businesses--more than 3,000,000
at last count--operate as an S corporation? Simple. An S
corporation saves business owners big taxes in three separate
ways:
...
No Income Verification Home Equity Loan
A no income verification home equity loan is a second mortgage loan that does not require you to provide income documentation to qualify for the loan. This type of loan is great for homeowners who need a home equity loan but have hard to...
The Benefits of Incorporating in Florida
There are many benefits to Incorporating in Florida. For one, there is an able work force, reflected by the fact that Florida’s unemployment rate is consistently lower than the national rate. Florida is the center of more than a few thriving...
Why Work from Home?
Have you noticed? There is a lot of publicity these days about working from home - increasing numbers of people are dreaming of leaving the rat race; TV programmes are made showing families leaving the city and moving to a rural retreat; and more...
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Failure To Pay Employment Taxes – Penalties
As an employer, you must pay employment taxes if you have employees. Fail to pay and the IRS will rain all over your parade.
Penalties
If you have employees, you absolutely must deduct and withhold various taxes from the paychecks of your employees. Since you are deducting money from the employee’s paycheck, you are handling their funds. This fact is very important to the IRS and it places great emphasis on any failure to deposit employment taxes.
If you fail to pay employment taxes, you will be subject to a 100 percent penalty. Yes, 100 percent. Known as the “trust fund recovery penalty”, the penalty is assessed against the person responsible for paying the taxes, not the entity. The person can be the owner, corporate officer or other “responsible person.” In short, a business entity is not going to protect you from the wrath of the IRS.
Late Payments
Cash flow crunches are an inevitable event for practically every business. So, what happens if you make a late payment for employment taxes. Unless you can show a reasonable
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reason for the delay, the IRS is going to penalize you.
Late payment penalties range in amount depending on the delay. If the delay is less than six days, the penalty is two percent. Delay for six to 15 days and you are looking at five percent. More than 15 days in delay is going to push the penalty to 15 percent. If you delay this long, the IRS will be peppering you with penalty notices telling you where you stand.
In Closing
Whatever you do, make sure you deposit employment taxes with the IRS in a timely fashion. Take a moment to think about the worst thing you have ever heard done by the IRS. If you fail to pay employment taxes, the actions taken by the IRS will be ten times worse and you will be the one telling horror stories.
About the Author
Richard Chapo is with Business Tax Recovery - Obtaining tax refunds for small businesses for overpaid taxes. Go to our article section to discover tax strategies and deductions.
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